Cost of Living in Fairbanks, AK

With a cost of living index of 101, Fairbanks, AK is right around the national average in cost. Living here is 1% more expensive than the national average and 11% above the Alaska state average of 90. With a population of 32,242, Fairbanks is a mid-sized community that balances access to services with a more manageable cost of living compared to larger metros.

Housing costs are the biggest factor in Fairbanks's cost of living. The median monthly rent is $1,470 (11% above the US median of $1,319), and the median home value sits at $255,700 (16% below the national median of $304,900). At current prices, the median home costs roughly 3.5x the median household income — a moderately affordable ratio by today's standards.

The median household income in Fairbanks is $72,077, which is 4% lower than the national median of $75,149. Residents spend roughly 24% of household income on rent. This is a comfortable ratio, well below the 30% threshold that financial experts recommend as a maximum.

Climate is another factor for anyone considering a move to Fairbanks. The area sees an average annual temperature of 28.3°F, with summers averaging 60°F and winters around -4°F. Annual rainfall totals 11.7 inches spread over roughly 107 days. Cold winters mean higher heating bills, an important cost-of-living consideration.

Everyday prices in the Fairbanks-College, AK (Metropolitan Statistical Area) metro area tend to run above the national average. Out of 6 common grocery and utility items tracked by the Bureau of Labor Statistics, 6 are priced higher than the US average. These real-world prices — from groceries to electricity — add up and should be factored into any cost of living comparison.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.